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$1T of that is locked up in effectively mandatory reserves on account of regulations. https://www.stlouisfed.org/on-the-economy/2019/march/banks-demand-reserve
by pishpash 7y ago
$1T of that is locked up in effectively mandatory reserves on account of regulations.
https://www.stlouisfed.org/on-the-economy/2019/march/banks-demand-reserves-face-liquidity-regulations https://www.stlouisfed.org/on-the-economy/2019/march/banks-d...
- simonh 7y agoQuite, these are not 'excess' reserves, they are just reserves.
- yasp 7y agoSo the implication is that banks are hoarding excess reserves because they expect required reserves to be increased substantially in the future? Regarding high quality liquid assets, wouldn't the collateral one would receive in a typical repo transaction qualify as such?